You are given the following financial position statement information about Jordan plc: Non-current assets Current assets Total
Question:
You are given the following financial position statement information about Jordan plc:
Transcribed Image Text:
Non-current assets Current assets Total assets Equity finance Ordinary shares (50p nominal value) Reserves Non-current liabilities 7% preference shares (£1 nominal value) 9% bonds (redeemable after 8 years) 9% bank loan Current liabilities Total liabilities You are also given the following information: Yield on Treasury bills Jordan plc equity beta Equity risk premium Current ex div ordinary share price Current ex div preference share price Current ex interest bond price Corporation tax rate Calculate the company's WACC using market weightings. 7% 1.21 9.1% £2.35 £000 200 150 300 650 560 66p £105 per £100 bond 19% £000 1,511 672 2,183 350 1,510 323 2,183
Fantastic news! We've Found the answer you've been seeking!
Step by Step Answer:
Answer rating: 16% (6 reviews)
Answered By
Amos Kiprotich
I am a wild researcher and I guarantee you a well written paper that is plagiarism free. I am a good time manager and hence you are assured that your paper will always be delivered a head of time. My services are cheap and the prices include a series of revisions, free referencing and formatting.
4.90+
15+ Reviews
21+ Question Solved
Related Book For
Corporate Finance Principles And Practice
ISBN: 9781292450940
9th Edition
Authors: Denzil Watson, Antony Head
Question Posted:
Students also viewed these Business questions
-
You are given the following information about Jordan plc: You are also given the following information: Yield on Treasury bills..................................................7% Jordan plc equity...
-
Describe three major concepts in law ethics and corporate governance course(e.g/concepts of freedom versus responsibility and ethical decision making, concepts of corporate governance and corporate...
-
You are given the attached information about Fred pic, comprising summarized P&L accounts, summarized balance sheets and some suggested ratio calculations. You should note that there may be...
-
You are an audit supervisor of PricewaterhouseCoopers (PwC) and are planning the audit of your client, Blister Pharmaceuticals co. which manufactures and imports sanitary and cleaning products...
-
Greensboro Properties, Inc., owns a building in which it leases office space to small businesses and professionals. During 2009, Greensboro Properties engaged in the following transactions: a. On...
-
(a) Define the stagnation process. Be careful to state all conditions. (b) Give a general equation for stagnation enthalpy that is valid for all substances. (c) Under what conditions can you use the...
-
Identify the audit procedures in tests of receivable balances that satisfy the audit objectives of (a) existence and occurrence and (b) completeness.
-
Weaver Companys predetermined overhead rate is $18.00 per direct labor-hour and its direct labor wage rate is $12.00 per hour. The following information pertains to Job A-200: Direct materials...
-
The resources for our class are located in Course Content. This is in the left column of the 'content' area. 1. The math: Explain how you move from the details of a situation to the next level. Each...
-
Strummer plc is calculating its current weighted average cost of capital on both a book value and a market value basis. You have the following information: 1. The current dividend, shortly to be...
-
Calet plc pays corporation tax at 19 per cent and has the following capital structure: Ordinary shares: 1,000,000 ordinary shares of nominal value 25p per share and market value of 79p per share. A...
-
A cannon is mounted on a railroad car. The cannon shoots a 1.75-kg ball with a muzzle velocity of 300 m/s. The cannon and the railroad car together have a mass of 4500 kg. If the ball, cannon, and...
-
What is the current status of the Doha Round of multilateral trade negotiations? Is the agreement moving forward?
-
An article in Forbes noted that the Intercounty Connector toll road that connects two counties in Maryland was not generating as much toll revenue as predicted. At that time, the toll rate was $8 for...
-
We often observe that items such as different brands of aspirin, gasoline, and tomato sauce are typically priced the same, particularly when consumers can find these goods in close proximity to each...
-
In your context, identify some prevent and detect controls. Discuss how effective they are, whether they could be improved and whether they could be replaced or even abandoned.
-
Between 2000 and 2017, real GDP per person grew, on average, 1% per year in the United States. Did this GDP growth benefit all Americans? What does this tell us about the limitations of GDP as a...
-
The file P10_10.xlsx contains data on 150 homes that were sold recently in a particular community. a. Find a table of correlations between all of the variables. Do the correlations between Price and...
-
Is the modified 5-question approach to ethical decision making superior to the modified moral standards or modified Past in approach?
-
Distinguish clearly between a marketing strategy and a marketing mix. Use an e x ample.
-
Distinguish clearly between mass marketing and target marketing. Use an example.
-
Why is the target market placed in the center of the four Ps in the text diagram of a marketing strategy (Exhibit 2-4)? Explain, using a specific example from your own experience.
-
A non dividend paying stock is trading at $57. What arbitrage opportunity is present if an American call option on the stock with an exercise price of $60 is trading at $4?
-
A railroad intends to purchases 12 million gallons of diesel fuel in one month and seeks to hedge the price risk in the nearby heating oil futures contract traded on NYMEX. The heating oil futures...
-
What is the difference between a stock's current market price and its intrinsic value? What is free cash flow? If you were an investor, why might you be more interested in free cash flow than net...
Study smarter with the SolutionInn App